Will the market wait and see how much the euro can recover against the U.S. dollar?
23.05.2025
- Germany's First-Quarter GDP
- Remarks by Federal Reserve Governor Cook
In yesterday’s U.S. trading session, the Canadian dollar emerged as the strongest currency toward the end of the session. The CAD/JPY pair rose from 103.122 to 104.074. On the hourly chart, the price extended from the -2σ to the +3σ Bollinger Bands. On the 4-hour chart, the pair is searching for direction just below the 200-period SMA support line, while on the daily chart, it is attempting to break above the 20-period MA, which is acting as resistance.
European currencies fell against the U.S. dollar, despite the fact that Germany’s May IFO Business Climate Index, released yesterday, improved to 87.5 from 86.9 the previous month.The euro fell against the dollar from 1.1344 to 1.1256. A decline along the 20-period moving average on the hourly chart was observed. On the 4-hour chart, a pullback from the +2σ Bollinger Band was seen, and on the daily chart, a decline from this month’s high range is evident.
Today’s economic indicators include Japan’s national consumer price index at 8:30 a.m., UK retail sales and Germany’s first-quarter GDP at 3:00 p.m., France’s consumer confidence index at 3:45 p.m., Canada’s retail sales at 9:30 p.m., and remarks by U.S. Federal Reserve Governor Musalem at 10:35 p.m.:St. Louis Fed President Musalem’s remarks, and US Kansas City Fed President Schmidt’s remarks; at 23:00, US New Home Sales; and at 25:00, remarks by US Federal Reserve Governor Cook. We intend to cautiously monitor the potential for a recovery in the euro, which has fallen against the US dollar.
Author: Keisuke Sakurai
